While the Delta variant has slowed economic growth in Virginia, the state’s commercial real estate market showed signs of strength in the 3rd quarter, according Virginia REALTORS’ Q3 2021 Commercial Market Report.

The report reveals that office markets in the state’s large metro areas — Northern Virginia, Richmond, and Hampton Roads — have been more resilient than smaller markets.

A key factor has been the strength of the high-end Class A market, which is in demand as companies bringing remote workers back to the office post-COVID seek buildings with amenities and flexibility.

 Neighborhood retail has also performed surprisingly well across most markets in Virginia, while “big box” stores continue to struggle, largely due to pre-COVID trends.

The industrial market remains the hottest segment of Virginia’s commercial real estate market. While large warehouse spaces continue to be in demand, there are growing challenges for businesses looking for niche small warehouse and flex space.

Photo: Richmond, VA skyline